India seeks faster EU approval for local agencies to verify carbon emissions

India is seeking faster approval from the European Union for domestic agencies that can verify carbon emissions under the bloc’s Carbon Border Adjustment Mechanism (CBAM), as talks on carbon pricing and the implementation of the levy continue, according to government sources.

The move is aimed at building verification capacity in India and reducing exporters’ dependence on a limited pool of overseas agencies, the sources said.

Six applications have already been submitted by Indian agencies seeking recognition as CBAM verifiers, while the government wants at least 10 agencies to apply, the sources said.

India is also discussing carbon pricing with the EU and working on its own Carbon Credit Trading Scheme (CCTS), with the government seeking to ensure that carbon prices already paid in India can be taken into account when calculating any liability in overseas markets.

India seeks domestic verification capacity

India’s National Accreditation Board for Certification Bodies (NABCB) has been consulting prospective Valid Verification Bodies (VVBs), or carbon-emissions verifiers, to assess the carbon footprint of different sectors and determine the carbon-related charges Indian exporters could face in the EU and UK.

The Commerce Ministry has said two accredited VVBs have submitted applications covering both the EU and UK CBAM systems, with office assessments underway.

India is seeking recognition for NABCB as an accreditation body for CBAM verifiers. The government has also opened bilateral discussions with an EU-recognised accreditation body on a possible memorandum of understanding that could support NABCB’s recognition in the future.

Separate discussions are underway with the European Commission’s Directorate-General for Taxation and Customs Union (TAXUD) on verifier accreditation and the wider implementation of CBAM.

The government is also seeking faster approvals as it works to expand the pool of Indian agencies that can carry out verification domestically, the sources said.

CBAM compliance preparations

Indian exporters are scheduled to begin filing CBAM returns in September 2027. The EU has also proposed extending CBAM to 180 downstream products, with CBAM certificates scheduled to go on sale from February 1, 2027, for goods imported in 2026.

The government has set up a committee on India’s preparedness for the EU’s CBAM, with representatives from government, regulators and industry bodies.

The committee has sought a mechanism to account for embedded emissions at the upstream producer level. The issue of emissions data for steel is being handled separately with the Ministry of Steel.

The Commerce Ministry is also holding discussions with industry, regulators and other government departments on CBAM compliance and preparedness.

It held a workshop in July on trade and sustainable development covering carbon markets, carbon pricing, CBAM, sustainability standards and trade competitiveness. Training and awareness programmes covering EU CBAM requirements, monitoring, reporting and verification (MRV), accreditation and verification are also being conducted.

An exporter awareness session was held on August 18, while technical discussions have also been held with the UK on its CBAM framework.

India wants carbon price paid at home recognised

In January 2026, the Commerce Ministry said India’s long-term interests would be protected despite the absence of a specific exemption from the EU’s CBAM.

The ministry had said that any flexibility extended to other countries under CBAM would also apply to India, ensuring Indian exporters were not placed at a disadvantage.

Under the India-EU FTA, a technical group is also expected to work on the accreditation of Indian verifiers that can assess the carbon footprint of exports.

The government has said any carbon-pricing or carbon-trading system introduced by India in the future would be factored into CBAM discussions. The EU will also provide technical assistance to help reduce carbon emissions in India’s industrial sector.

The FTA includes a non-violation clause intended to protect concessions already granted under the agreement if future rules affect their value.

UK recognition offers potential relief

The UK last week confirmed that membership of the Global Accreditation Cooperation Incorporated (GACI) would be sufficient for recognition of accreditation bodies from third countries such as India’s NABCB.

The move could reduce the carbon-related liability faced by Indian exporters in the UK by allowing carbon prices already paid under India’s CCTS to be recognised.

This could help prevent exporters from effectively paying twice for the same carbon emissions. UK importers of eligible Indian goods would be able to claim relief for qualifying carbon prices already paid in India.

India and the UK will continue discussions on linking India’s CCTS with the UK’s CBAM, according to the government.

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